1999 (9) TMI 931

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....camphor oil and other things and the dispute in these revision petitions is about the nature of- (i) Capinone (ii) Sandalica (iii) Isobornyl acetate (iv) Terpineol (v) Astrolide (vi) Thymol According to the Revenue these were taxable as scents and perfumes under entry 60 of a notification dated September 7, 1981. The contention of the dealerrevisionist on the other hand was that they are chemicals. The rate of tax on these two categories of goods is 12 per cent and 8 per cent respectively. 4.. Entry No. 60 is in respect of "scents and perfumes, excluding agarbattis and dhoop battis". The Tribunal mentioned the characteristic of these things as under: "1. Capinone: Chemical classification: Acetyl longifolers App....

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....e prevention of unpleasant odours. (3) In the manufacture of disinfectant formulations."   "4. Terpineol (PG): Chemical classification: Mixture of tertiary terpene alcohols. Appearance: Colourless, viscous liquid. Odour: Sweet, pleasant, lilac character. Applications: (1) Excellent perfumery ingredient for soaps, toilet preparations and sprays. (2) In the production of chemicals like terpinyl acetate, used as an intermediate. (3) In the preparation of acacia, carnation, violet and lavender types of odours. (4) Suitable ingredient for industrial perfumes used as deodorants and for making unpleasant odours of solvents, processing materials and finished products."   "5. Astrolide: Chemical classification....

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....y all forms of intestinal parasites, specially the hook worm." 5.. The aforesaid characteristic of the commodities, as mentioned in the Tribunal's order, are not disputed and the question is whether the Tribunal has rightly placed them in the category of scents and perfumes. Entry No. 21 in the aforesaid notification deals with "Chemicals of all kinds including fuel gases" and entry No. 5 deals with "all kinds of cosmetics and toilet preparations for beautification or care of the face, skin, hair, nails, eyes or brows, but not including soaps, safety razor blades, hair combs, tooth pastes, tooth powders and other dentifrices, tooth brushes and Kum kum". In A. Boake Roberts and Co. (India) Ltd. now Bush Boake Allen (India) Ltd. v. Board o....

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....erous substances. Sandalwood oil sold as a base for preparing perfumes and other articles is not therefore a perfume or scent. The court also observed that sandalwood oil as sold in the market does not vaporise readily to serve the purpose of a common perfume. It has to be rubbed hard on the hand or some other part of the body so that the temperature can be raised by friction and better vaporisation takes place. Therefore, it has to be used in mixture with other substances like oil or alcohol or soap so that the resultant product can emit the peculiar perfume characteristic of sandal. 6.. In G. Radhakrishna Murthi & Co. v. Commercial Tax Officer [1999] 113 STC 161 (SC); 1998 UPTC 906 the question was whether agarbattis could be taxed as ....